Global Off Grid Solar Market Report
Global Off Grid Solar Market by Application (Residential, Commercial, and Industrial) and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2021-2031
Off Grid Solar Overview
Off-grid solar refers to a solar system that is not connected to the electrical grid. It is designed to generate and store electricity independently, usually in remote areas or places where grid access is not available. Solar panels consist of multiple solar cells that convert sunlight into electricity through the photovoltaic effect. The charge controller regulates the charging of the batteries connected to the solar panels. Off-grid solar systems are commonly used in remote locations where access to the grid is either limited or unavailable. They are also popular among individuals or communities seeking energy independence or looking to reduce their reliance on fossil fuels. Off-grid solar systems contain batteries to store excess electricity generated during the day. The stored energy can then be used during periods when the solar panels are not producing electricity, for example at night or during cloudy days.
Common types of batteries used in off grid solar include lead acid, lithium ion, or advanced gel batteries. This system monitors and controls the flow of electricity within an off-grid solar system, optimizing energy use and ensuring efficient operation. It includes functions such as load monitoring, system health monitoring, and automatic control functions.
Global Off Grid Solar Market Analysis
The Global Off Grid Solar Market Size was $1,890.00 million in 2021 and is predicted to grow with a CAGR of 12.3%, by generating a revenue of $5,825.80 million by 2031.
Source: Research Dive Analysis
COVID-19 Impact on Global Off Grid Solar Market
The COVID-19 pandemic had a significant impact on the off grid solar market. The market was impacted due to disruption in the supply chain for components such as solar panels, batteries, and inverters. The pandemic also led to disruptions in manufacturing and transportation, causing delays in the production and delivery of these components. This resulted in supply shortages and increased prices for off-grid solar systems. Furthermore, the economic impact of the pandemic affected the market because of changing consumer spending patterns. The restrictions imposed to control the spread of the virus, such as lockdowns and social distancing measures, significantly impacted the installation and maintenance of off-grid solar systems. These restrictions limited the availability of technicians, resulting in delays in project installations and service provisions.
The off-grid solar industry is strongly reliant on investment and funding, including public grants, commercial investments, and government subsidies. The pandemic's effects on the economy have reduced the amount of money available for renewable energy initiatives. This has created challenges for companies in securing financing for off-grid solar initiatives. The pandemic forced governments and organizations all around the world to focus on public health and emergency response operations.
Increasing Demand for Electricity Independence to Drive the Market Growth
There is a rising demand for off-grid solar systems as they provide advantages in terms of electricity independence. Off-grid solar systems allow individuals or communities to produce their own electricity apart from the conventional power grid. This self-sufficiency offers a continuous and dependable source of power, particularly in rural places where a grid connection would not be practical or economical. Solar power systems outside the grid depend on the sun's clean and renewable energy. These systems aid in lowering greenhouse gas emissions and battling climate change by generating power without burning fossil fuels. They aid in promoting sustainable living and reducing reliance on non-renewable energy sources. Off-grid solar systems may need a larger initial investment than systems that are linked to the grid, but they are more cost-effective in the long run. Off-grid solar can be financially feasible since the initial expenditure may eventually be outweighed by the energy cost reductions. In rural and underdeveloped places where extending standard electrical grid infrastructure is challenging or expensive, off-grid solar systems are especially useful. These systems enhance overall quality of life and promote socioeconomic development by making it possible for families, schools, hospitals, and other fundamental services to have access to electricity. These are the major factors anticipated to boost the off grid solar market share during the forecast period.
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High Initial Costs to Restrain the Off Grid Solar Market Growth
High initial cost is a major concern for users of off grid solar. Off-grid solar systems need a variety of parts, including wiring, batteries, inverters, charge controllers, and solar panels. These parts might be expensive, especially if dependable and high-quality equipment is needed. The costs of solar panels and related may be a barrier, particularly in poor countries with limited financial resources. Off-grid solar systems have expenses for installation and upkeep in addition to equipment costs. Proper installation requires skilled labor, which may increase the upfront costs. Ongoing maintenance and repairs can also be required to ensure the system operates efficiently and reliably, which can further add to the overall cost, which is anticipated to hamper the off grid solar market growth in the upcoming years.
Rising Energy Access in Remote Areas to Drive Excellent Opportunities
Off-grid solar power systems offer a practical way to acquire energy in rural and underdeveloped areas where grid infrastructure is lacking or unreliable. Off-grid solar systems are an environmentally friendly alternative to solutions that rely on fossil fuels since they produce power from renewable resources, especially the sun. Off-grid solar energy improves air quality and lowers greenhouse gas emissions by taking the place of kerosene or diesel generators, creating a safer environment for residents. The difficulty of the terrain and low population density makes it expensive to deploy network infrastructure in many distant regions. Off-grid solar systems may be more affordable to implement as they do not need a lot of infrastructure construction. Off-grid solar systems have incredibly low continuous operational costs after they are installed, especially when compared to diesel generators that require regular fuel purchases. Off-grid solar power systems do provide a lot of potential for isolated places to get electricity.
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Global Off Grid Solar Market Size, by Application, 2021
Source: Research Dive Analysis
The industrial sub-segment accounted for the highest off grid solar market share in 2021. Industrial facilities have become more prevalent, and these facilities frequently have large energy requirements. Traditional grid-connected energy sources, such diesel generators, can be replaced by off-grid solar energy options at a lower cost. Industrial users may significantly reduce their energy cost by using solar power, especially in distant locations where securing grid connectivity may be difficult or expensive. Off-grid solar solutions enable industrial facilities to become self-reliant in terms of their energy needs. This independence is particularly crucial for industries located in remote or off-grid areas where grid power is unreliable or unavailable. Industrial customers may increase their operational effectiveness and productivity by adding solar panels and energy storage systems, giving them dependable and uninterrupted electricity. Industries are becoming more conscious regarding the importance to cut their carbon footprint and transition to renewable energy sources.
Global Off Grid Solar Market Size & Forecast, by Region, 2021-2031 ($Million)
Source: Research Dive Analysis
The Asia-Pacific off grid solar market size generated the highest revenue in 2021. There has been a significant rise in energy consumption in Asia-Pacific as a result of its large population and rapidly growing economies. The availability of energy is unstable in many areas of Asia-Pacific, especially in remote and rural areas. Off-grid solar power systems provide a decentralized solution to the global energy access problem by enabling individuals and communities to produce their own affordable and clean electricity. Off-grid solar energy is crucial in achieving goals for energy access, cutting greenhouse gas emissions, and advancing sustainable development. Off-grid solar system use has been promoted through the creation of beneficial rules, incentives, and subsidies. Off-grid solar systems are becoming more accessible and effective owing to lowering prices for solar panels, batteries, and other equipment as well as advancements in energy storage technologies. This has led to the rise of off-grid solar solutions in Asia-Pacific and is further expected to drive the regional market growth.
Competitive Scenario in the Global Off Grid Solar Market
Investment and agreement are common strategies followed by major market players. In November 2022, LONGi Solar Technology Co., Ltd., one of the leading market players in the industry announced the delivery completion of 406MW of its bifacial PV panels Hi-MO 5, for the Solar plant developed by PowerChina SEPCO III for Saudi Arabia’s Red Sea Solar PV Project. The Red Sea Project includes 400MW of solar PV and is the world’s largest off-grid energy storage project.
In October 2022, Tata Power Solar Systems announced the launch of cost-efficient solar off-grid solutions in West Bengal, Bihar, and Jharkhand. The off-grid solutions provide a combination of high-efficient solar modules, inverters, and batteries and are available in 11 variants ranging from 1 - 10 KW with a 5-year warranty.
Source: Research Dive Analysis
Some of the leading off grid solar market players are ABB Ltd., Schneider Electric SE, Canadian Solar, Engie, SMA Solar Technology ag, Jinko Solar Holding Co. Ltd, SunPower Corporation, Delta Electronics, Greenlight Plant, and Hanwha Group.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the global off grid solar market?
A. The size of the global off grid solar market was over $1,890.00 million in 2021 and is projected to reach $5,825.80 million by 2031.
Q2. Which are the major companies in the off grid solar market?
A. ABB Ltd., Schneider Electric SE, and Canadian Solar are some of the key players in the global off grid solar market.
Q3. Which region, among others, possesses greater investment opportunities in the future?
A. Europe possesses great investment opportunities for investors in the future.
Q4. What will be the growth rate of the Europe off grid solar market?
A. Europe off grid solar market is anticipated to grow at 12.7% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Engie, SMA Solar Technology ag, and Jinko Solar Holding Co. Ltd, are the companies investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
1.5.Market size estimation
2.2.Key objectives of the study
2.5.Overview of the impact of COVID-19 on global off grid solar market
4.2.Growth impact forces
4.3.Market value chain analysis
4.3.1.List of raw material suppliers
4.3.2.List of manufacturers
4.3.3.List of distributors
4.4.Innovation & sustainability matrices
4.5.Porter’s five forces analysis
4.5.1.Bargaining power of suppliers
4.5.2.Bargaining power of consumers
4.5.3.Threat of substitutes
4.5.4.Threat of new entrants
4.5.5.Competitive rivalry intensity
4.7.Impact of COVID-19 on off grid solar market
4.7.1.Pre-covid market scenario
4.7.2.Post-covid market scenario
5.Off Grid Solar Market Analysis, by Application
5.2.1.Definition, key trends, growth factors, and opportunities
5.2.2.Market size analysis, by region, 2021-2031
5.2.3.Market share analysis, by country, 2021-2031
5.3.1.Definition, key trends, growth factors, and opportunities
5.3.2.Market size analysis, by region, 2021-2031
5.3.3.Market share analysis, by country, 2021-2031
5.4.1.Definition, key trends, growth factors, and opportunities
5.4.2.Market size analysis, by region, 2021-2031
5.4.3.Market share analysis, by country, 2021-2031
5.5.Research Dive Exclusive Insights
6.Off Grid Solar Market, by Region
126.96.36.199.Market size analysis, by Application, 2021-2031
188.8.131.52.Market size analysis, by Application, 2021-2031
184.108.40.206.Market size analysis, by Application, 2021-2031
6.1.4.Research Dive Exclusive Insights
220.127.116.11.Market size analysis, by Application, 2021-2031
18.104.22.168.Market size analysis, by Application, 2021-2031
22.214.171.124.Market size analysis, by Application, 2021-2031
126.96.36.199.Market size analysis, by Application, 2021-2031
188.8.131.52.Market size analysis, by Application, 2021-2031
6.2.6.Rest of Europe
184.108.40.206.Market size analysis, by Application, 2021-2031
6.2.7.Research Dive Exclusive Insights
220.127.116.11.Market size analysis, by Application, 2021-2031
18.104.22.168.Market size analysis, by Application, 2021-2031
22.214.171.124.Market size analysis, by Application, 2021-2031
126.96.36.199.Market size analysis, by Application, 2021-2031
188.8.131.52.Market size analysis, by Application, 2021-2031
6.3.6.Rest of Asia-Pacific
184.108.40.206.Market size analysis, by Application, 2021-2031
6.3.7.Research Dive Exclusive Insights
220.127.116.11.Market size analysis, by Application, 2021-2031
18.104.22.168.Market size analysis, by Application, 2021-2031
22.214.171.124.Market size analysis, by Application, 2021-2031
126.96.36.199.Market size analysis, by Application, 2021-2031
6.4.5.Rest of LAMEA
188.8.131.52.Market size analysis, by Application, 2021-2031
6.4.6.Research Dive Exclusive Insights
7.1.Top winning strategies, 2021
7.3.Market share analysis, 2021
8.2.Schneider Electric SE
8.5.SMA Solar Technology ag
8.6.Jinko Solar Holding Co. Ltd